$100 - $100,000
CS: 0 • 5.96% - 35.99%
Best Debt Consolidation Loans for Bad Credit of September 2026
ElitePersonalFinance
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Debt •
Loan Reviews •
Loans •
Last Update: September 7, 2026
Debt consolidation loans allow borrowers to roll multiple debts into a single new one with fixed monthly payments and, ideally, a lower interest rate. With a debt consolidation loan, a lender issues a single personal loan that you use to pay off other debts, such as balances on high-interest credit cards. You’ll pay fixed, monthly installments to the lender for a set time period, typically two to five years. The rates may be a bit higher and still make sense if your multiple loan cost is very high and your credit score is poor.
Best personal loans for debt consolidation loans for good credit come with APRs of between 5.99% and 10%. For bad credit, you can expect an APR of up to 35.99%.
Suppose you have bad credit. That does not mean that you have to get payday loans. They are predatory. In this article, we discuss getting personal loans for debt consolidation. However, we still recommend that you watch our video, which discusses how people with bad credit can get approved on a personal loan.
ElitePersonalFinance Marketplace
$100 - $40,000
CS: 0 • 5.99% - 35.99%
$100 - $100,000
CS: 0 • 5.96% - 35.99%
$100 - $20,000
CS: 0 • 5.99% - 35.99%
$100 - $5,000
CS: 0 • 5.99% - 35.99%
FICO Score Range
| Credit Score: | Lower: | Upper: |
|---|---|---|
| Credit Score:Very bad | Lower:300 | Upper:560 |
| Credit Score:Bad | Lower:560 | Upper:650 |
| Credit Score:Average | Lower:650 | Upper:700 |
| Credit Score:Good | Lower:700 | Upper:750 |
| Credit Score:Excellent | Lower:750 | Upper:850 |
Best Debt Consolidation Loans for Bad Credit of September 2026
| Loan Company: | Min. Credit Score: | APR: | Amount: | Apply: |
|---|---|---|---|---|
PersonalLoans |
580 | 5.99% - 35.99% | $35,000 | Apply Now SSL No Credit Effect |
LendingTree |
500 | 3.99% - 35.99% | $50,000 | Apply Now SSL No Credit Effect |
Upgrade |
580 | 7.99% - 35.99% | $50,000 | Apply Now SSL No Credit Effect |
LendingClub |
600 | 6.16% - 35.89% | $40,000 | Apply Now SSL No Credit Effect |
Upgrade
Check Rates
SSL
No Credit Effect
Fees
- Origination fee of 1.85% – 9.99% of the loan amount
- Origination fee is deducted from the loan proceeds
- Late payment fee of up to $10 if the full payment is not received within 15 calendar days of the due date
- Failed electronic or check payment fee of $10 per occurrence
- One-time title transfer fee may apply to certain secured loans; amount is determined by the local motor vehicle agency
- No application fee
- No prepayment penalty
Qualification Criteria
- Minimum age: 18, or 19 in Alabama and certain other states
- Must be a U.S. citizen, permanent resident, or living in the U.S. on a valid visa
- Must provide a verifiable bank account
- Must provide a valid email address
- Credit score, credit usage, and credit history are considered
- Income and employment information are considered during the final review
- Debt-to-income ratio and existing debt obligations may be considered
- May be required to provide proof of income, identity, employment, or other documentation
- W-2 employees may provide gross income; self-employed applicants may provide net income
- Checking your rate uses a soft credit inquiry and does not affect your credit score
- A hard credit inquiry occurs after the loan is funded
- Certain secured loan offers may require collateral
- Loan amounts and terms may vary by state
- Not all applicants will qualify
Average Borrower Profile
- Upgrade does not currently publish a verified average funded personal-loan amount or average borrower credit score
- Loan offers depend on credit score, credit usage history, income, requested loan amount, and other financial information
- Upgrade's current personal-loan product is designed for borrowers across a range of credit profiles
- Actual loan amount, APR, fees, and repayment terms depend on the applicant's qualifications
Best For
- High DTI ratios
This lender extends loans to borrowers with a credit score of 580 and above. With Upgrade, you can borrow up to $50,000 with an APR of between 7.99% to 35.99%. The repayment period is usually between three to five years.
Best for:
- Borrowers with steady cash flow.
- Borrowers looking for a debt consolidation option.
Pros:
- Competitive APRs.
- No prepayment penalty.
- Free credit health Monitoring.
- Soft pull on the initial application.
Cons:
- High origination fees for some loans.
- Late payment fees.
- Returned check fees.
Upgrade Disclaimer:
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.74%-35.99% and a 1.85%-9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For certain discounts, collateral may be required. Repayment terms from 24 to 84 months. For example, if you receive a $10,000 unsecured loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR and other terms of your loan may vary and you may not be presented with multiple offers. If offered, your loan terms, including your rate, will depend on credit score, credit usage history, loan amount, and other factors. Late payments or other fees, as noted in your Borrower Agreement, may increase the cost of your fixed rate loan. Certain loan offers may not be available in all states.
After acceptance, your funds will be sent within one (1) business day of clearing necessary verifications. Funds availability is dependent upon your bank’s transaction processing time and may take up to 2 weeks if sent directly to third party creditors.
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PersonalLoans
Check Rates
SSL
No Credit Effect
Fees
- No fee to use PersonalLoans.com's loan-connecting service
- Origination fee may apply and is determined by the individual lender
- Other lender fees may apply depending on the loan offer and agreement
- Late payment fees may apply according to the lender's terms
- Returned payment and other lender fees may apply
- PersonalLoans.com does not determine lender fees or loan costs
- All applicable fees must be disclosed by the lender before the borrower accepts the loan
Qualification Criteria
- Minimum age: 18
- Must have a valid Social Security number
- Must be a legal U.S. citizen or permanent resident
- Must have full-time employment, be self-employed, or receive regular disability or Social Security benefits
- Must have a valid checking account for most loan offers
- No minimum credit score is required to submit a loan request
- Must generally not have accounts more than 60 days late
- Must generally not have active or recent bankruptcies
- Must generally not have a pattern of late payments
- Must generally not have debt that cannot be covered by current income
- Must generally not have recently charged-off accounts
- Some lenders may require income verification such as a pay stub
- Individual lenders may have additional eligibility requirements
- Not all applicants will qualify
Average Borrower Profile
- PersonalLoans.com does not publish a current average funded-borrower loan amount or average borrower credit score
- The lender network accepts loan requestors with all credit scores
- Applicants with good or excellent credit may receive more favorable terms
- PersonalLoans.com states that its network generally serves borrowers with different credit profiles
- Actual loan amount, APR, fees, and repayment terms depend on the individual lender and the borrower's qualifications
Best For
- Short and long-term personal loans
PersonalLoans is a huge marketplace with lenders that serve many customers in different target groups.
Best for:
- Good and excellent credit score.
Pros:
- Competitive APRs.
- Low credit requirements.
- Low-income requirements.
- No prepayment penalties.
- No hidden fees.
- Great customer support.
Cons:
- You can’t delay your payments too much.
LendingTree
Check Rates
SSL
No Credit Effect
Fees
- No fee to compare personal-loan offers through LendingTree
- Origination fees may apply depending on the lender and loan offer
- Origination fees vary by lender, loan amount, and repayment term
- Late payment fees may apply according to the lender's loan agreement
- Returned payment and other lender fees may apply
- LendingTree does not determine lender fees, APRs, or loan terms
- All applicable fees are disclosed by the individual lender before accepting an offer
Qualification Criteria
- Minimum age: 18 or the age of majority in the applicant's state
- No universal minimum credit score applies across the LendingTree marketplace
- Must provide accurate personal, income, employment, and financial information
- Credit score and credit history may be considered
- Annual income may be considered
- Debt-to-income ratio may be considered
- Length of credit history may be considered
- Employment stability may be considered
- Loan amount and requested repayment term may affect eligibility
- Checking offers generally uses a soft credit inquiry
- A hard credit inquiry may be required by the selected lender during final approval
- Each lender has its own qualification and underwriting requirements
- Not all applicants will receive an offer
Average Borrower Profile
- LendingTree users who received at least one personal-loan offer in 2025 had an average credit score of 653
- The average self-reported income was $70,551
- The average requested loan amount was $14,365
- The average age of the oldest credit account was 11.5 years
- The average offered loan amount across all credit scores was $13,575 in Q2 2026
- Average offered amount was $17,715 for excellent credit, $10,045 for fair credit, and $7,766 for poor credit
- These figures represent LendingTree marketplace users and lender offers, not guaranteed funded-loan amounts
Best For
- Obtaining a low APR
LendingTree is the best place to start shopping for personal loans for debt consolidation. This platform does not extend loans but connects borrowers with the best deals in the market.
Once you apply on their platform, you are matched with up to five different lenders that will compete to give you the best rates.
Pros:
- Easy online application.
- Multiple offers.
- Low APRs.
- Quick funding.
Cons:
- Requires a great deal of personal information to get meaningful results.
Best for: Borrowers with a steady source of income.
LendingClub
Check Rates
SSL
No Credit Effect
Fees
- Origination/processing fee of 0% – 8% of the loan amount
- Origination/processing fee is determined at the time of application
- No application fee to check your rate
- No prepayment penalty
- Late payment fees may apply according to the loan agreement
- Other fees may apply depending on the loan agreement and state
- Actual APR, fees, loan amount, and terms depend on creditworthiness, loan amount, term, and other factors
Qualification Criteria
- Minimum age: 18
- Must meet LendingClub Bank's credit and underwriting requirements
- Must provide accurate personal and financial information
- Credit history and creditworthiness are considered
- Income and debt obligations may be considered
- Debt-to-income ratio and ability to repay may be evaluated
- Applicants may be required to provide proof of income or other supporting documents
- Checking your rate uses a soft credit inquiry and does not affect your credit score
- A hard credit inquiry may occur if the loan is issued
- Some applicants may apply with a co-borrower
- Sufficient investor commitment may be required for loan funding
- Loan amounts, APRs, and terms may vary by state
- Not all applicants will qualify
Average Borrower Profile
- Average loan principal: $19,234
- Average APR: 17.63%
- Average origination fee: 6%
- Average loan term: 36 Months
- These figures are based on LendingClub borrower data from April 2025 through June 2025
- Actual loan amount, APR, fees, and repayment terms depend on the applicant's qualifications
Best For
- Smooth Online Experience
LendingClub extends personal loans to borrowers with a minimum credit score of 600. With this lender, you can borrow up to $40,000 and pay the amount within 36 to 60 months. Their APRs range from 6.95% to 35.89%.
Best for:
- You have a bad credit score.
- You need less than $40000.
- You have a stable job.
Pros:
- Accepts bad credit scores.
- Offers lower APRs.
- No prepayment penalties.
Cons:
- Charges origination fee.
- Funding takes nearly a week.
If none of the above options meets your purpose, we encourage you to keep shopping. Here are some tips to help you make the most out of personal loans for debt consolidation for bad credit.
What to Consider Before Taking a Personal Loan for Debt Consolidation for Bad Credit?
A personal loan for debt consolidation will do you no good if you are not ready to change your spending habits and focus on clearing the debt.
Transferring all your debt into a personal loan does not mean that your debt has vanished. It is still there, and things will continue getting worse if you do not focus on paying it. In fact, without proper planning, this method can push you deep into debt and further destroy your credit.
It would help if you reminded yourself that you are still in debt until you can clear the personal loan.
Proper preparation requires a budget reflecting on how you can afford to pay each month comfortably. Shop around with this figure in mind to avoid taking a personal loan with monthly payments you can’t manage.
It is also better to keep paying the multiple loans if you realize that the savings from the personal loan for debt consolidation are insignificant. Keep working on your credit score until you are eligible for better terms. You may find yourself saving more if you invest in improving your credit score first.
There are multiple resources out there to help you work on your rating. Please read our guide on how to increase your credit score by 100 points in three months.
How to Shop Around for The Best Deals?
ElitePersonalFinance Marketplace
$100 - $100,000
CS: 0 • 5.96% - 35.99%
$100 - $40,000
CS: 0 • 5.99% - 35.99%
$100 - $100,000
CS: 0 • 5.96% - 35.99%
$100 - $20,000
CS: 0 • 5.99% - 35.99%
$100 - $5,000
CS: 0 • 5.99% - 35.99%
When shopping for a personal loan for debt consolidation with bad credit, there are several essential things you need to note.
First, do not rush to take offers at face value. Scrutinize each deal and ask questions where things are not clear. Remember that while some lenders may appear attractive regarding rates, they may not be worthwhile when fees are considered.
If you cannot find a good deal that matches your bad credit score, there are several other options that you can consider.
- Personal loans with a cosigner
You can get someone with a good credit score to co-sign you a loan. This means that the lender will consider the cosigner’s credit rating when determining whether to extend a loan to you.
A loan with a co-signer is likely to have a high approval rate and lower APRs. The downside is that the co-signer takes full liability if you fail to meet the loan terms as agreed.
Let the co-signer know the repercussions before signing, and do your best to ensure that you do not get them into trouble. Please note that not all lenders accept loan applications with a co-signer.
- Secured personal loans for debt consolidation
Another way to increase the chances of approval with bad credit is to apply for a secured loan. In a secured personal loan, you commit your asset/s as security for the loan.
The lender goes after the pledged asset if you fail to meet the loan terms. This not only leads to a more significant loss on your side but also affects your credit score.
Assets most commonly used as collateral include home equity, car, savings, or certification of deposit. Do not take a secured personal loan for debt consolidation unless you are confident that you will strictly adhere to the loan payment terms.
Advantages of Unsecured Loans for Bad Credit
The best thing about unsecured personal loans for bad credit is that they are easy to apply and do not take long to get funded. This means that if you get a good deal, you can start saving on interest almost immediately.
If you move all your debts to a personal loan and adhere to the payment terms, your credit score improves. When calculating FICO scores, credit rating agencies consider your debt utilization ratio, credit mix, and payment history, among other things.
If your multiple debts do not include a personal loan, taking one for debt consolidation positively impacts your credit score.
Also, moving all debts into one card means that some cards are freed up to take more debt, and this is considered a great thing when calculating your credit score. Please do not close the cards or use them to take up more debt before paying off the debt consolidation loan.
Conclusion
A bad credit score should not close you out from getting a personal loan for debt consolidation. Even with a credit score below 600, you will likely find great offers if you do your homework well.
Always ensure that you read each offer’s fine prints to ensure that you are subscribing to a viable deal. Some loans may come with low rates but offset the advantage with very high fees.
If you still cannot find a good deal, consider taking secured personal loans or engaging a co-signer. These two methods have their disadvantages and therefore are not fit for everyone.
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